Philippine Property Market: Century Properties Expands as BSP Signals Rates Stay High
New housing launches meet a central bank in no rush to cut rates
Written by PropVela Editorial TeamPublished 2 min read
This week's roundup looks at a major affordable-housing rollout and a central bank that continues to pump the brakes on rate cuts, a combination that will shape home-buying decisions in the months ahead.
Century Properties adds P6.35-B housing projects after merger
Listed developer Century Properties Group has launched its first new projects under the PHirst brand since folding its affordable-housing arm into the parent company. The two house-and-lot developments, PHirst Sights Calauan West in Laguna and PHirst Sights Batangas, together carry an estimated sales value of P6.35 billion and will offer roughly 3,265 residential units. CPG disclosed to the stock exchange that it has already secured the required licenses to sell both projects. According to BusinessWorld, the launches mark a fresh chapter for the brand post-merger.
BSP signals rate cuts still distant amid high inflation
BSP Governor Eli Remolona Jr. said the economy may be turning a corner after a possible third-quarter recovery, but cautioned that rate cuts remain out of reach while inflation stays elevated. Last month the Monetary Board, by a strong majority, hiked the policy rate by half a point to 5.5 percent — the fourth increase this year, pushing cumulative hikes since April to 125 basis points. Higher-for-longer rates continue to weigh on mortgage affordability and developer financing costs across the property sector. According to the Philippine Daily Inquirer, easing is not yet on the horizon.
BSP: High interest rates here to stay as inflation threatens fresh peaks
Governor Remolona reinforced that message, saying the BSP's tightening stance will likely persist for the next two years as inflationary pressures linger, with no immediate rate cuts in sight. Deputy Governor Zeno Abenoja kept the 2026 headline inflation forecast at 6.1 percent and raised the 2027 assumption to 6 percent from 5.4 percent, while flagging that inflation could spike as high as 8.2 percent before year's end. That outlook suggests home loan rates will stay elevated for some time yet. According to Manila Bulletin, the central bank is bracing for a prolonged tightening cycle.